The National Stock Exchange of India (NSE) has launched a new Closing Auction Session. The implementation of the new system caused confusion among traders during its debut, as the shift resulted in observed spikes in the NSE Nifty 50 Index.
The new session is used to determine the official market closing price. On a 1-minute chart, the last candle may be revised after 3:30 PM once the auction concludes. While the number of candles on stock charts does not change after the auction, the Close, and sometimes the High or Low, of the final candle can change significantly if the auction price differs from the last traded price during continuous trading.
Impact on Technical Indicators
Due to these auction adjustments, indicators based on the last candle—such as ATR, candle range, momentum, or volatility—may show a larger-than-normal final candle. TradingView and most data vendors update the existing final candle with the official closing price after the NSE Closing Auction is complete.
